3. Incorporate with the Secretary of State

Details

Why Incorporate

Unincorporated churches are susceptible to liability among members for accident claims, contract disputes and employment issues. Unincorporated churches cannot enter into legal contracts or incur debt for building.

Ways to Incorporate

Fill out Form Corp 52 – Articles of Incorporation of a Nonprofit Corporation through the Secretary of State’s office. There is a small filing fee,

(OR) Have a lawyer draft Articles of Incorporation and file them with the Secretary of State’s Office.

4. Have the first board meeting.

Adopt organizing documents and required policies

Elect officers

Authorize opening bank account

5. Affiliate with the Missouri Baptist Convention

Participate in the Cooperative Program

Provide federal tax exempt 501(c)(3) status for your church

Details

Why Affiliate

Affiliation with the Missouri Baptist Convention affords a church the opportunity to commit to cooperative missions and ministry through the Southern Baptist Convention and the Cooperative Program.

A church affiliated with the Missouri Baptist Convention falls under the convention’s federal tax exempt status and does not have to apply for individual tax exempt status.

As a tax exempt organization, you do not have to pay federal tax on related income for your church. If a church has unrelated income (income not related to the tax exempt purposes), the church must pay tax on that type of income. Tax Document (.pdf)

A church obtains a federal identification number by filling out the IRS Form SS-4. The IRS will issue the church a nine-digit identification number (xx-xxxxxxx) for reporting such things as payroll tax, W-2s, and 1099s to the IRS. Website: irs.gov

Missouri Sales Tax Exemption

A church affiliated with the Convention receives a packet of information that includes an application for sales tax exemption, Form 1746 – Missouri Sales/Use Tax Exemption Application and instructions on how to apply. The federal tax exemption does not relieve a church of paying sales tax on purchases in the state of Missouri. However, the church may apply for a sales tax exemption with the state of Missouri and therefore avoid paying sales tax.

7. Open church bank account

Put safeguards in place now for smart financial management and oversight.